U.S. Private Real Estate Debt
- AUM $22.5 billion
(31 December 2017)
- Inception Date 18591
- Vehicles Available
- Separate Account
- Commingled Fund
- Tax Credit Equity Fund
Our investment philosophy emphasizes strong governance, oversight and transparency. We seek to invest our clients’ capital prudently in private real estate debt, and use state-of-the-art research, investment and portfolio management experience to guide our decisions. Our experience as both a borrower and lender ensures a thorough understanding of the underlying real estate and associated business plans, and provides for a pragmatic and commercial approach to debt transactions. We seek to add value by actively managing our portfolios through an integrated team of origination, servicing, portfolio management and finance specialists.
Our Value Add
- Deep Experience; Long Tenured: Our seasoned group of investment professionals has been investing in private debt since 1986
- Dedicated Platform: Our dedicated in-house debt platform and specialty operations consist of extensive resources across a wide range of investment origination and management disciplines, and leverages the resources of a global real estate platform
- Sourcing Advantage: The exceptional geographic coverage and deal flow generated from our regional office network offers a broad range of investment opportunities
- Track Record: We have a longstanding, favorable track record
We offer a broad spectrum of debt financing solutions including commercial mortgage loans, construction/permanent loans, residential loan pools and affordable housing tax credits.
Commercial Mortgage Loans
We have financed commercial mortgage loans aggregating $41 billion in committed capital on high-quality properties for institutional-quality borrowers in top 50 market locations. We have a dedicated team with the local expertise to provide a broad range of financing solutions for all major property types, including office, multifamily, retail, industrial, hotel, senior housing and parking. From straightforward, low-leveraged acquisitions and refinances to acquisitions requiring swift execution, we serve the financing needs of our clients by offering fixed and floating-rate debt (including forward commitments) for transactions starting at $15 million, with an emphasis on:
- Experienced and well-regarded sponsors: Strategic relationships with experienced local, regional and national sponsors/developers with solid track records
- High-quality projects: Strong assets in good markets with clearly identifiable patterns of revenue growth, coupled with sound business plans and viable exit strategies
- Strong alignment of interests: Opportunities with appropriate sponsor alignment of interests and equity investment
Residential Loan Pools
We have invested over $14 billion in conventional and government residential loan pools since 19861, and we believe our experience and distinct expertise allows us to capitalize on unique value-add residential loan pool investment opportunities for our clients. Our staff includes dedicated industry professionals with experience in residential mortgage loan trading, underwriting, surveillance and portfolio and risk management. As part of our process, we evaluate residential mortgage loan pools for acquisition at the loan level and seek to enhance investment performance through active management while also ensuring consistency between commitment, closing, reporting and remittances. All servicers, trustees, custodians and bank relationships are monitored for performance and compliance.
As a real estate industry leader, we have provided debt financing (and equity capital) to the affordable housing marketplace since 1995, with transactions now in excess of $3 billion.1 We offer investors a broad range of expertise and capabilities in mortgage financing, equity investing, fund management, securitizations and asset management. As a permanent lender, we provide immediate and fixed-rate forward commitments for both taxable loans and tax exempt private placements. As an equity investor, we offer programs for proprietary fund investing, combined debt and equity structures, and direct investing. As a fund manager, we offer a subordination structure that allows for varying risk-return positions for different investor classes. While our primary focus is to service the risk/return objectives of our clients, our investments in affordable housing also serve a greater public good, which we highly value. Since 1995, our affordable housing investment activity has helped build—or rehabilitate and preserve—more than 50,000 apartment units serving low-to-moderate income families and seniors.
1 Lending and debt servicing activities prior to 2010, while conducted by Core Mortgage, occurred at an affiliated firm.